There are some that say the economy is still shaky, and others – mostly politicians – that tell us the economy is definitely on the up. Stability is increasing, jobs are everywhere, business is booming, so they say. So does this mean that one subject firmly 'parked' for almost a decade will finally be back on the table?
Pay rises are rarely expected in today's market. But new research shows that, currently, one in three workers would consider moving jobs if a pay increase wasn't somewhere to be found on the horizon.
A report by Glassdoor reveals that 39% of those surveyed will look for a new job if they don't receive an increase in their pay within the next year, which equates to approximately 12 million people. With statistics quoting the average cost of a vacancy as £30,000, that's one heck of a headache for employers – surely, facing such an outlay for replacing these members of staff, a fair and conservative increment seems like a good business move?
How much is 'fair'?
What an employee expects and what their employer can afford to pay, or will consider paying, could be poles apart. Glassdoor showed that 48% of survey participants expect a rise of 2% or less. Perhaps that will stop those at the top of organisations from breaking out into a nervous sweat, and see them convinced instead that a pay rise could be a good thing. Not least for employee engagement and retention, but also when it comes to their competition, who could benefit from your mass exodus of staff heading for more lush pastures.
Recruiters would also benefit if a third of all workforces suddenly upped sticks in the hope of a fairer deal. Though it's been proven that pay is only one of the reasons someone would be attracted to a job, it seems like recruiters should brace themselves for it to be a hot topic with candidates fed up with no increases year on year whilst fighting the rising cost of living. Job satisfaction is all well and good, but it doesn't pay the bills. One compromise is extra benefits, such as healthcare packages and company cars; remote or flexible working, for example.
One last significant finding from the Glassdoor report concerned redundancy, with 35% of those surveyed feeling this was a threat not yet put to bed in our improving economy. It appears there's little foundation for such fears, however, given that fewer bosses have communicated that redundancies are possible, and the actual number of people being made redundant dropping.
Recruiters may see a rise in vacancies, balanced against an equal rise in the number of people looking for work. Their challenge is, if someone has left because a pay rise wasn't on the cards, how will the next candidate - who may have also 'walked' because he/she didn't see the increment they felt they deserved in their previous position – find what they seek in the new organisation?
Fast Recruitment Websites help recruitment web design agencies attract the best talent and clients with their attractive, functional, fit-for-purpose, affordable websites. Call 01302 288591 for an informal chat about your requirements, or email us at info@fastrecruitmentwebsites.com.
